Insuring your home, condo, or rental property: What to know about the number of units, tenants & more

Depending on the type of policy you have with Sonnet, there are specific limits on the number of units you can rent out and the number and type of tenants you can have.

Heads up! This info applies to long-term rentals only. To find out about Sonnet’s short-term rental rules, check out our FAQ on Airbnb and short-term rentals.

Here’s what is and isn’t allowed when you’re renting to others:

If you have a homeowner’s policy and live in your home

If you’re living in your house, you’re allowed to rent the portion you live in to a maximum of two additional people.

Example: Let’s say you’re looking to make a bit of extra cash by getting a couple of roommates to fill the two extra bedrooms in your place. Your homeowner’s policy allows you to rent them out to two people, one per room.

You’re also allowed to rent out a maximum of two separate units in the home to no more than one family per unit. Renting your extra units to unrelated tenants, or students isn’t permitted. What do we mean by separate unit? A separate legal unit has its own entrance, kitchen, bedroom, and bathroom. It doesn’t have open access to the rest of the household.

Example: You own a two-story house that’s been renovated into three units – a first floor unit, a second floor unit, and a basement unit. You live in the first floor unit. Your homeowner’s policy covers you if you rent out the second floor and basement units to two separate families.

Heads up! If you’re not living in your house during the time it’s rented, or this isn’t your primary residence, then it’s not covered under your homeowner’s policy and you’ll need a landlord policy.

If you have a condo policy and live in your condo

If you’re living in your condo, you’re allowed to rent a portion of it to a maximum of two people.

Example: If your condo has an extra bedroom, you’re allowed to have one paying roommate. If you have two extra bedrooms, you’re allowed to have two paying roommates – one in each bedroom.

If you’re the landlord of a rental property and have a landlord policy

Your landlord policy will cover a rental property that has a maximum of three units, rented to three separate families. Student rentals and renting to unrelated tenants (roommates) aren’t allowed.

Example: You’re the landlord of a duplex. A family lives in one unit and three students (or friends) live in another. Sonnet’s landlord policy doesn’t cover this situation, since one unit is occupied by students. If the units were occupied by two families, a landlord policy would cover you.

If you’re the landlord of a condo and have a rented condo policy

Bought a condo as an investment property? Your rented condo policy covers you if you’re renting it out to one family. Renting to students or unrelated tenants (roommates) isn’t allowed.

Example: You own a two-bedroom condo that you’re renting to a couple and their baby. Your Sonnet condo policy covers you in this case. Looking to rent to a couple of students, or friends? Unfortunately, we wouldn’t be able to provide coverage in this situation.

Heads up! If you’re getting a quote for a condo you’re going to rent out, select ‘Condo’ as the Property type, and ‘I own it, don’t live in and rent it out’ as the Ownership type.

Some coverages are limited when you’re renting out your home, rental property, or condo, or part of it. Whatever rental situation you’re in, be sure to read your policy documents closely so you understand what’s covered and what could be excluded. Or, contact us – we’re happy to help!